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Chevrolet and GMC Make GM the Hottest Retail Automaker in the Industry

GM’s retail market share increased one percentage point in the first quarter of 2016 to an estimated 16.4 percent

Chevrolet’s hot hand continues: March retail sales up 7 percent year over year; first quarter retail share up about one percentage point

Best March retail sales for GMC since 2005, up 13 percent

Best first quarter retail sales for Buick since 2004

Rental deliveries down 14,000 units year over year, or 33 percent

Commercial deliveries up for 29th consecutive month

DETROIT – General Motors (NYSE: GM) delivered 193,524 vehicles in March to individual or “retail” customers, up 6 percent year over year, driven by a 7 percent increase at Chevrolet and a 13 percent increase at GMC. The strong performance of these two brands has helped GM grow retail deliveries every month since April 2015. Despite significant reductions in daily rental units, total sales were up one percent.

GM’s first quarter sales results versus a year ago underscore the company’s momentum:

Retail deliveries were up 7 percent, with cars up 14 percent and trucks up 8 percent; total sales were equal to a year ago

Retail market share was up a full percentage point

Commercial deliveries were up 9 percent and have increased year over year for 29 consecutive months

Sales to Government customers were up 23 percent

Daily rental sales were down approximately 43,000 units year over year, or about 36 percent

Chevrolet has been the main engine of growth. The brand’s retail sales were up 10 percent in the first quarter versus a year ago, and its retail market share was up full point year over year to an estimated 11 percent.

“The strong retail and Commercial sales GM has been delivering are the result of a multi-year strategy to strengthen our brands, attract new customers and grow profitably,” said Kurt McNeil, U.S. vice president of Sales Operations. “We are growing retail sales faster than the industry, and we are doing it with disciplined incentives and inventories, and lower rental deliveries. Our business is very healthy, and we are going to manage it with conviction to keep it that way.”

GM North America President Alan Batey discussed how GM is growing its retail sales and bucking industry trends around fleet sales, incentives and inventories at a March 23 investor conference hosted by Bank of America/Merrill Lynch.

Among the highlights:

GM’s focus on higher margin retail and Commercial sales is enabled by strategic reductions in daily rental deliveries, which will continue through 2016.

GM is able to maintain Average Transaction Prices (ATP) above the industry average thanks to disciplined incentive spending, smart product bets in the car and crossover segments, and the industry’s most successful truck strategy.

Well-managed inventory levels support disciplined incentive spending.

GM’s customer loyalty rates have surpassed pre-recession levels.

These strategies will help GM make the most of today’s strong – and sustainable – industry:

“The underlying strength of the U.S. economy is very positive for auto sales,” said Mustafa Mohatarem, GM’s chief economist. “We expect historically low interest rates, strong employment, rising wages and stable fuel prices to continue for the foreseeable future. The Fed’s decision to delay interest rate hikes should extend the current sales cycle, and allow the auto industry to continue to lead the overall U.S. economic recovery, as it has throughout the current cycle.”

March Retail Sales Highlights vs. 2015 (except as noted)

Chevrolet

Car sales were up 8 percent led by the all-new Malibu, which was up 65 percent, along with the Camaro up 23 percent, the Spark up 4 percent and the Volt up 202 percent.

The Malibu had its best first quarter since 1980, and approximately 85 percent of sales in March were the all-new model, which is the fastest-selling car in its segment with a “days-to-turn” of 24 days.

Truck sales were up 6 percent, with the Colorado up 44 percent, the Suburban up 54 percent, Tahoe up 29 percent and Silverado up 2 percent.

The Suburban had its best March sales since 2008, and the Colorado had its best March since 2005.

In the crossover market, the Trax was up 39 percent and the Traverse was up 12 percent.

GMC

The brand had its best March since 2005, with sales up 13 percent.

The Yukon and Yukon XL had their best March since 2008, up 31 percent and 22 percent, respectively.

Canyon was up 15 percent and the Sierra was up 27 percent.

Buick

The brand had its best first quarter sales since 2004, up 9 percent, driven by the Regal and Encore.

The all-new Cascada convertible is exceeding expectations with more than 800 deliveries in March, its first full month on sale.

Encore deliveries were up 28 percent in March, driving the crossover’s 27th consecutive month of year-over-year retail sales growth. The vehicle now accounts for more than one-third of Buick deliveries.

Buick had its highest-ever conquest sales in March, at 46 percent of sales.

Cadillac

Escalade deliveries were up 12 percent.

The first-ever CT6 is now arriving in dealer showrooms.

Cadillac ATPs were the highest in its competitive set, at approximately $55,000, up about $1,700.

GM’s ATPs, which reflect retail transaction prices after sales incentives, were $35,800 in March, up more than $1,500 from February and about $5,000 above the industry average.

GM’s incentive spending as a percentage of ATPs was 10.0 percent in March, well below domestic competitors and the industry average of 10.8 percent.

Fleet and Commercial

GM’s fleet mix in March was approximately 23 percent of total sales, in line with the company’s full-year guidance of 20 percent.

Commercial sales grew 13 percent, Government sales were up 55 percent and daily rental deliveries were down 33 percent.

GM’s daily rental mix of total sales was 11 percent.

Industry Sales

GM estimates that the seasonally adjusted annual selling rate (SAAR) for light vehicles in March was 17.1 million units. Through the first quarter, GM estimates the light vehicle SAAR was 17.4 million units.

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Chevrolet will be introducing a new base model of the 2018 Tahoe called the Custom. The Custom sets itself apart from other Tahoes as it will not have a third-row seat, increasing cargo space to 54 cubic feet. Standard equipment includes 18-inch wheels, 8-inch touchscreen with Apple CarPlay and Android Auto compatibility, OnStar 4G LTE with Wi-Fi, backup camera, and remote start.
Like most Tahoes, the Custom features the 5.3L V8 with 355 horsepower. Out of the box, the Tahoe Custom can tow up to 6,600 pounds. An optional max trailering package boosts that to 8,600 pounds.
“The Tahoe Custom is a response to strong customer demand for Tahoe, as well as the full-size SUV segment moving upmarket. In the past five years, the average transaction price for the segment has climbed fueled by customer appetite for features like heated and cooled seats, adaptive cruise control and a head-up display. This created an unmet need in the marketplace for customers who want the cargo and towing capability of a full-size SUV to go camping, boating or off-roading but don’t necessarily want all of the option content offered on a Tahoe Premier,” said Sandor Piszar, Chevrolet Trucks marketing director in a statement.
The 2018 Tahoe Custom arrives at dealers next month with a base price of $44,995.
Source: Chevrolet
Press Release is on Page 2

CHEVROLET INTRODUCES THE TAHOE CUSTOM
New model offers Tahoe’s legendary capability starting at $44,995
DETROIT — Today Chevrolet announced the new Tahoe Custom special edition for the 2018 model year. Like other Custom models, the Tahoe Custom is intended for buyers who want the uncompromised capability of Chevrolet trucks and SUVs in a great looking package at an outstanding value.
“The Tahoe Custom is a response to strong customer demand for Tahoe, as well as the full-size SUV segment moving upmarket,” said Sandor Piszar, Chevrolet Trucks marketing director. “In the past five years, the average transaction price for the segment has climbed fueled by customer appetite for features like heated and cooled seats, adaptive cruise control and a head-up display. This created an unmet need in the marketplace for customers who want the cargo and towing capability of a full-size SUV to go camping, boating or off-roading but don’t necessarily want all of the option content offered on a Tahoe Premier.”
For $44,995, the 2018 Tahoe Custom comes standard with 6,600 pounds of towing capacity (up to 8,600 pounds of towing with max trailering package), a maximum of 112 cubic feet of cargo space and a 355-hp, 5.3L V-8 engine that delivers an expected segment-leading 23 mpg highway based on EPA estimates.
The Tahoe Custom is based on the LS trim and adds 18-inch painted aluminum wheels, all-season tires and a chrome-accented grille. Plus, Tahoe Custom features a third-row seat that has been removed, increasing cargo space behind the second row to a substantial 54 cubic feet for added utility.
Tahoe Custom also features a suite of connectivity technologies including:
Apple CarPlay & Android Auto compatibility
4G LTE connectivity with Wi-Fi hotspot (includes three-month/3G data trial)
8-inch color touchscreen radio
Standard rear-vision camera
Standard remote start
Standard teen driver mode
Available Enhanced Driver Alert Package that features Forward Collision Alert, Safety Alert Driver Seat, IntelliBeam headlamps with automatic high-beam control, Lane Keep Assist and Low Speed Forward Automatic Braking
Up to five USB ports and five power outlets — including a 110-volt three-prong outlet — to support electronic devices of all kinds (up to 11 charging locations)
Tahoe Custom will be available at Chevy dealers in September 2017.

Chevrolet will be introducing a new base model of the 2018 Tahoe called the Custom. The Custom sets itself apart from other Tahoes as it will not have a third-row seat, increasing cargo space to 54 cubic feet. Standard equipment includes 18-inch wheels, 8-inch touchscreen with Apple CarPlay and Android Auto compatibility, OnStar 4G LTE with Wi-Fi, backup camera, and remote start.
Like most Tahoes, the Custom features the 5.3L V8 with 355 horsepower. Out of the box, the Tahoe Custom can tow up to 6,600 pounds. An optional max trailering package boosts that to 8,600 pounds.
“The Tahoe Custom is a response to strong customer demand for Tahoe, as well as the full-size SUV segment moving upmarket. In the past five years, the average transaction price for the segment has climbed fueled by customer appetite for features like heated and cooled seats, adaptive cruise control and a head-up display. This created an unmet need in the marketplace for customers who want the cargo and towing capability of a full-size SUV to go camping, boating or off-roading but don’t necessarily want all of the option content offered on a Tahoe Premier,” said Sandor Piszar, Chevrolet Trucks marketing director in a statement.
The 2018 Tahoe Custom arrives at dealers next month with a base price of $44,995.
Source: Chevrolet
Press Release is on Page 2

CHEVROLET INTRODUCES THE TAHOE CUSTOM
New model offers Tahoe’s legendary capability starting at $44,995
DETROIT — Today Chevrolet announced the new Tahoe Custom special edition for the 2018 model year. Like other Custom models, the Tahoe Custom is intended for buyers who want the uncompromised capability of Chevrolet trucks and SUVs in a great looking package at an outstanding value.
“The Tahoe Custom is a response to strong customer demand for Tahoe, as well as the full-size SUV segment moving upmarket,” said Sandor Piszar, Chevrolet Trucks marketing director. “In the past five years, the average transaction price for the segment has climbed fueled by customer appetite for features like heated and cooled seats, adaptive cruise control and a head-up display. This created an unmet need in the marketplace for customers who want the cargo and towing capability of a full-size SUV to go camping, boating or off-roading but don’t necessarily want all of the option content offered on a Tahoe Premier.”
For $44,995, the 2018 Tahoe Custom comes standard with 6,600 pounds of towing capacity (up to 8,600 pounds of towing with max trailering package), a maximum of 112 cubic feet of cargo space and a 355-hp, 5.3L V-8 engine that delivers an expected segment-leading 23 mpg highway based on EPA estimates.
The Tahoe Custom is based on the LS trim and adds 18-inch painted aluminum wheels, all-season tires and a chrome-accented grille. Plus, Tahoe Custom features a third-row seat that has been removed, increasing cargo space behind the second row to a substantial 54 cubic feet for added utility.
Tahoe Custom also features a suite of connectivity technologies including:
Apple CarPlay & Android Auto compatibility
4G LTE connectivity with Wi-Fi hotspot (includes three-month/3G data trial)
8-inch color touchscreen radio
Standard rear-vision camera
Standard remote start
Standard teen driver mode
Available Enhanced Driver Alert Package that features Forward Collision Alert, Safety Alert Driver Seat, IntelliBeam headlamps with automatic high-beam control, Lane Keep Assist and Low Speed Forward Automatic Braking
Up to five USB ports and five power outlets — including a 110-volt three-prong outlet — to support electronic devices of all kinds (up to 11 charging locations)
Tahoe Custom will be available at Chevy dealers in September 2017.

The sixth-generation Chevrolet Camaro has been lagging somewhat in sales when compared to the likes of the Ford Mustang and Dodge Challenger. Through July, Chevrolet only has moved 41,280 Camaros (down 2.5 percent). Compared to the Mustang which sold 50,814 (down 30 percent). The Challenger trails the Camaro but not by much - 41,243 units (up 2.6 percent). It gets worse when you compare it to last-generation Camaro. In 2015, the last year for the fifth-generation model, Chevrolet moved 77,502 models. A year later when the sixth-generation arrived, sales dropped to 72,705 models.
To try and change the Camaro's fortunes, General Motors is considering making some changes to the lineup. Some of those changes will focus on the base and V8 models.
"I think we've got opportunities at the very low end of the Camaro range and some remix of some of the V-8 options on it so we don't force people to buy all the options with a V-8, just to get a V-8," said GM product chief Mark Reuss.
Reuss wouldn't go into detail about the possible changes or when we could see them.
Bringing down the price of the V8 is a great start. The 2018 Camaro with the V8 begins at $37,995 which is $4,800 more the Mustang V8 and $5,000 more than the Challenger. We could see a base V8 with smaller wheels, skip the infotainment system and have a radio, and other changes.
We hope Chevrolet is planning to make changes very soon as Ford's refreshed Mustang is just around the corner.
Source: Automotive News (Subscription Required)

The sixth-generation Chevrolet Camaro has been lagging somewhat in sales when compared to the likes of the Ford Mustang and Dodge Challenger. Through July, Chevrolet only has moved 41,280 Camaros (down 2.5 percent). Compared to the Mustang which sold 50,814 (down 30 percent). The Challenger trails the Camaro but not by much - 41,243 units (up 2.6 percent). It gets worse when you compare it to last-generation Camaro. In 2015, the last year for the fifth-generation model, Chevrolet moved 77,502 models. A year later when the sixth-generation arrived, sales dropped to 72,705 models.
To try and change the Camaro's fortunes, General Motors is considering making some changes to the lineup. Some of those changes will focus on the base and V8 models.
"I think we've got opportunities at the very low end of the Camaro range and some remix of some of the V-8 options on it so we don't force people to buy all the options with a V-8, just to get a V-8," said GM product chief Mark Reuss.
Reuss wouldn't go into detail about the possible changes or when we could see them.
Bringing down the price of the V8 is a great start. The 2018 Camaro with the V8 begins at $37,995 which is $4,800 more the Mustang V8 and $5,000 more than the Challenger. We could see a base V8 with smaller wheels, skip the infotainment system and have a radio, and other changes.
We hope Chevrolet is planning to make changes very soon as Ford's refreshed Mustang is just around the corner.
Source: Automotive News (Subscription Required)

It is no secret that Chevrolet is working on a mid-engine Corvette, especially when a set of spy shots clearly showing the vehicle came out last fall. A new batch of spy shots have hit the web and we now have a better idea of what it could look like.
The pictures reveal that the front end will look somewhat similar to the current Corvette with a pointed nose. There appears to be a curved windshield and a tapered roofline. Other pictures reveal the outline of the hood where the V8 engine resides.
Speaking of the V8 engine, there are reports saying the mid-engine Corvette will have three engines on offer - codenamed LT2, LT6, and LT7. We know LT6 is possibly a naturally-aspirated V8 with 700 horsepower and LT7 is a twin-turbo V8. LT2 might be a hybrid of some sort.
Everyone seems to think General Motors will unveil the mid-engine Corvette at the Detroit Auto Show next year. We'll be keeping a close eye to see if this happens.
Source: Car and Driver, Motor1